24.012018Important of a Gaming Site License in Gaming Business
The only way to operate a successful online gaming web is to get a gambling license. It doesn’t really matter what type of gaming your site deals with if you don’t have an operating license, you are putting your business, yourself, your employees, your family, and all your partners at risk. Therefore, it is critical to follow the law if you wish to keep your business safe, no matter where you are.
What are the risks involved?
There are four kinds of risks that your business might face if you operate without the necessary licenses.
1. Risk of arrest and prosecution by the relevant authorities
The authority seeks out unlicensed gaming businesses in many ways. They might trace your business via your advertisement campaigns or via any form of marketing, you might take for your business. The authority is patient, they won’t mind waiting for decades before they get you. Even disguising behind trusts, international jurisdictions, or nominees won’t protect you.
To give you an example, you might have heard about gaming businesses operating without a license for decades, accepting the US players even without a US license. And then one day, they visit the US and they are arrested immediately. It takes just one complaint to get you arrested.
2. Risk for your PSP and bank
It is almost impossible to operate a business without an account. To operate an online gaming website, you need a bank account in order to provide payment options on your site. Without a license, it will be hard to get a bank that will accept your business (if you get one, it will charge you more to cover the risk involved).
Financial institutions can be accused of adding an illegal business if they offer your website with a payment channel. For instance, if your site accepts payments from gamblers in the US and you don’t have a license from the US, then your PSP is accountable as well.
3. Risk of having no reputation
Who will trust an online web without an operating license? Gamblers don’t want to risk their cash on an illegal business. And what type of a person will want to work for your illegal business? Not having a license doesn’t inspire trust and often sends the wrong signal to potential players and employees.
4. Risk for your partners
People have been arrested for displaying a banner on an illegal website. Authorities might accuse your partners of advertising illegal web if they haven’t blocked access from the states where the web isn’t licensed.
What is the way forward?
Apply for a lawful gaming license. Choose a state with reputable gaming regulations such as Malta, Curacao, Philippines, Britain, or Gibraltar. A gaming business license might cost about $20,000.
Gambling is a sensitive topic around the globe and the business is taken quite seriously by authorities and regulators all over the world. The strict regulations of this industry will only become stricter in the coming years. Obey the law and keep your business operating without fear of the risks we have mentioned above.
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